WPX Energy Flooded With Senior Note Offers

WPX Energy in Tulsa says its offer to purchase up to $500 million in outstanding senior notes resulted in nearly $1 billion in notes offered for sale.

The company announced the cash tender offers earlier in the month for outstanding 7.500% Senior Notes due 2020, 6.000% Senior Notes due 2022 and 8.250% Senior Notes due 2023.

In an announcement this week, the company said, “According to information received from Global Bondholder Services Corporation, the Depositary and Information Agent for the Tender Offers, as of 5:00 p.m., New York City time, on April 16, 2018 (that date and time, the “Early Tender Date”), $328.7 million aggregate principal amount of the 2020 Notes and $628.4 million aggregate principal amount of the 2022 Notes were validly tendered and not validly withdrawn pursuant to the Tender Offers.

But WPX expects to purchase $328.7 million in 2020 Notes and another $171.3 million in 2022 notes validly tendered. The company said because the amount of notes exceeded the tender amount, the 2022 Notes validly tendered will be accepted on a pro rata basis. It will also not purchase any of the 2023 notes.

Those who hold the purchased 2020 notes will receive $1,092.50 per $1,000 principal while holders of the 2022 notes will receive $1,052.50 per $1,000 principal amount.